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India finance secretary says doesn't wants to curb RBI's powers

India's Finance Secretary on Monday dismissed reports that the government was trying to curtail the central bank's powers on monetary policy.

PHOTO: REUTERS

[NEW DELHI] India's Finance Secretary on Monday dismissed reports that the government was trying to curtail the central bank's powers on monetary policy.

The comments came days after the finance ministry published a draft parliamentary bill that would reduce the Reserve Bank of India's (RBI) independence to set interest rates.

Rajiv Mehrishi said it was not right to conclude on the basis of the draft bill that the government was trying to clip the central bank's wings.

The draft legislation, published last month for public comments, called for the creation of a rate-setting panel, removed a reference to the central bank governor's veto power, and permitted the government to appoint more than half of its members.